Selective Financial Services | We support Project Finance | Back to Back Solutions | Financial Collateral and Receiving Banks
A - Client completes and submits the Business Support Contract
B - The completed contract and submission is assessed by the Intake Officer to determine if a client can be qualified to receive this Prime Bank Collateral Service.
C - If it can be determined that a transaction can be accepted, the invoice for the commitment or call option fee is issued and it has to be paid directly into the Facilitator’s account.
D - If a Borrower proves to be of substance, the Facilitator is prepared to advance this on behalf of a client. Receipt of commitment or call option fee automatically causes acceptance to the BSC by the Facilitator. You may need to place the Euro 30,000 commitment or call option fee if you are not fully qualified.
E - Once a client has committed himself to the transaction, the Facilitator or his securities dealer starts negotiations with standby investors to buy specific securities for this Securities Borrowing and Lending transaction.
F - Call option fee is placed on the Securities market reserving these specific securities to back up your transaction for the next 20 days.
G - The Securities Borrowing and Lending Agreement is issued and sent to the borrower client together with all information to clearly identify the securities that will build the basis on which the BG or SBLC will be issued for the client.
H - Within 20 days, client’s bank sends the conditional payment instrument to pay for the borrowing and lending fees
I - Issuing and Receiving Bank communicate to fine tune the SWIFT MT760 delivery of the instrument and perform their own due diligence on the parties involved.
J - Receiving Bank consents to return the SBLC/BG 15 days prior maturity
K - In this Securities Borrowing and Lending transaction, the issuing bank sends the agreed SBLC or BG via SWIFT MT 760 to the receiving bank in line with the Securities Borrowing and Lending Agreement.
L - The Receiving Bank verifies the SWIFT MT 760 SBLC or BG instrument and releases payment for the borrowing and lending fees as to the Securities Borrowing and Lending Agreement.
M - With the instrument in his account, the client triggers cash from his credit line and starts his project. He has the unrestricted use of the collateral as to the Securities and Borrowing Agreement for the coming 350 days.
N - Fifteen days prior maturity, the client is given the opportunity to extend the service for another year. If the client does not need the instrument any longer, the client’s bank returns the SBLC/BG after 350 days.